Wal-Mart Stores Inc. (NYSE:WMT) Q3 2018 Earnings Conference Call Transcript

Nov 15, 2017 • 07:00 pm ET


Wal-Mart Stores Inc. (NYSE:WMT) Q3 2018 Earnings Conference Call Transcript


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Steve Schmitt

Good morning, and thank you for joining us to review Walmart's Third Quarter Fiscal 2018 Results. This is Steve Schmitt, VP of IR at Wal-Mart Stores, Inc. The date of this call is November 16, 2017.

On today's call, you will hear from Doug McMillon, President and CEO; and Brett Biggs, CFO.

(Forward-Looking Cautionary Statements)

As a reminder, our earnings materials include the press release, transcript and the accompanying slide presentation, which are intended to be used together. All of this information, along with our recently published fiscal 2019 earnings release dates, store counts, square footage, earnings infographic and other materials are available on the Investors portion of our corporate website, stock.walmart.com.

For our US comp sales reporting in fiscal 2018, we utilize a 52-week calendar. Our Q3 reporting period ran from Saturday, July 29, 2017 through Friday, October 27, 2017.

Before we get started, I'd like to remind you that we will report our fourth quarter earnings on Tuesday, February 20, 2018.

Now, I'd like to turn the call over to Walmart CEO, Doug McMillon.

Douglas McMillon

Thanks, Steve, and good morning, everyone. We're pleased with the strong results in the third quarter across each of our business segments. We're providing customers with fast and easy ways to save money and time, and they're responding. The highlights for the quarter from my perspective are; Walmart US comp sales of 2.7% were strong, Walmart US eCommerce sales were up 50%, adjusted EPS exceeded our guidance range, Sam's Club comps were strong at 2.8%, and in international, 10 of 11 markets posted positive comp sales. So overall, we're moving in the right direction, the productivity loop is starting to turn, and I'm encouraged by our results.

I'll discuss more details from our third quarter in a minute, but I'd like to start by thanking everyone, who came to Bentonville for our Investment Community Meeting in October. We hope that you gained a clear perspective of our strategy to make every day easier for busy families. We have a plan that plays to our unique strengths. We're acting faster and being disciplined about costs and capital. Curiosity, creativity, decisiveness and speed are priorities. There's a lot of innovation today in the business, and we enjoyed sharing some of the initiatives with you. We've expanded online grocery pickup, launched Mobile Express Returns, and we're testing automated pickup towers and same-day grocery delivery. We're also learning how to automate some routine functions in our stores, like scanning for shelf level out of stocks and modular accuracy. We're leveraging our unique assets and financial strength to better serve customers and accelerate growth.

When we were together last month, we outlined four priorities; make every day easier for busy families, change how we work, deliver results and operate with discipline, and be the most trusted retailer.

By executing on all these strategic priorities, we're confident that our customers and shareholders will benefit. The importance of that fourth priority, being the most trusted retailer, was certainly amplified over the past